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Successful Renewable Energy Business models. Successful Renewable Energy Business Models. MICK O’REILLY. Our aim is to facilitate, educate and advise the public and private sector on renewable energy. What we do. Action Renewables Association
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Successful Renewable Energy Business models Successful Renewable Energy Business Models MICK O’REILLY
Our aim is to facilitate, educate and advise the public and private sector on renewable energy
What we do • Action Renewables Association • Consultation Services (tech and economic appraisal) • MCS (Microgeneration Certification Scheme) • Energy Trading • Project Management • Seminars/Conferences • Training/Up skilling/Education • EU Programmes
Wind developer model • Farm based anaerobic digestion model • ESCO model
Wind developer model Developing wind turbine sites of an appropriate size to maximise returns • Site identification • for development • Higher risk/ lower cost • existing planning permission and grid • Lower risk but added value and higher cost • Owns and operates turbine • Site lease with site owner • land owner paid an annual lease • Fixed or percentage of income
Wind Developer Model: Example Economics – Northern Ireland Development of a 250 kW turbine on a 6.5 m/s site
Wind developer model Community Wind Developer • Similar approach to development • Different approach to financing • Co-operative model • Can partner with site owner and share project
Farm Based Anaerobic Digester Model What is farm based anaerobic digestion? • Digester fed with biomass and animal waste to produce biogas • Biogas runs generator to produce heat and electricity, which receives ROCs • 0.5 ha required per kW of generation • 500 kW generator requires 250 ha
Farm Based AD Model: Example Economics – Northern Ireland Development of a 500 kW AD Plant
Farm Based Anaerobic Digester Co-operative Model • Average Northern Irish farm is 41 ha • too small for cost effective AD • Farmers can form a co-operative to feed and run the AD plant • together can provide enough biomass to jointly own and operate a plant
ESCO Model What is an ESCO? • Energy Services Company • Supplies heat & electricity to a business over a long-term contract at a % below market prices • Enables a business to lower its energy costs for no financial outlay • An attractive proposition, especially for high energy users
ESCO Model What does an ESCO do? • ESCO installs generating plant and will take responsibility for: • Finance • Design, build and install • Operate and maintain generation plant • Supplying energy at an agreed rate (% below market prices) over long-term contract
ESCO Model Solar PV ESCO • Solar PV rent roof is an example of an ESCO • Panels are financed and installed by the ESCO • ESCO supplies electricity supplied at to the business at 10p/ kWh • Offsets import 16p/ kWh for grid electricity • For a 50 kW PV system the ROCs have a value of 17p/ kWh • ROCs plus sale of electricity = 27p/ kWh value to ESCO
ESCO Model: Example Economics – Northern Ireland Development of a 50 kW Solar PV installation
Social Economy Advantages • Access to competitive finance • Social objectives an advantage in winning tendering • Can partner with other organisations to present a better proposal in competitive tendering